A potential double bottom formation suggests underlying value-seeking interest in silver, but a drop below $22 could lead to further decline, albeit not guaranteed.
- During Thursday’s trading session, silver made an initial attempt to rise and reached the 200-Day EMA.
- In the end, I think there are still a lot of loud players in this market, but I also think there are a lot of buyers underneath.
- Looking at the silver market, we have tested the 200-day EMA during the day on Thursday, as you can see.
- I think a lot of people will be watching the 200-day EMA, and it’s clear to me that there has been a lot of selling pressure there.
In fact, I would be happy if we did break down from here because silver is probably going to keep considering the $22 mark as a possible floor in the market. The $23.50 mark is another hurdle that I believe will be challenging to cross on the upside.
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It is possible that the market will target $24.50 if and when we do. Remember that there will be a lot of questions regarding global central bank monetary policy and that silver will continue to be quite noisy. Naturally, that has a significant impact on precious metals. However, it appears like we are attempting to create a small double bottom underneath at this time. And I believe that the double bottom is a scenario in which there are still a lot of value seekers to be found.
It’s quite possible that we could drop below the $21 level if we were to break below the $22 mark, but I wouldn’t hold my breath for that. Anticipate significant fluctuations and wavering in price, but a decline would be appreciated. It should present me with an opportunity to purchase inexpensive silver and, naturally, diversify away from the dollar, which is probably going to struggle this year along with many other fiat currencies because of future measures by central banks. In the end, industrial demand must also be taken into consideration, but since everyone is currently fixated on the Federal Reserve, the ECB, etc., I believe that this segment of the market is currently quite modest.
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